Why Is an Understanding of the Concept Called Present Value

question 22

Essay

Why is an understanding of the concept called present value so critical for those who want to understand finance.

---

Definitions:

Multiple Logistic Regression

A statistical method that models the relationship between multiple independent variables and a binary dependent variable.

Dependent/Outcome Variable

The variable in an experiment or statistical model that is assumed to depend on or be caused by another variable(s).

Forty-Year-Old

An individual or subject that has reached the age of forty, often used in demographics or studies to define a particular age group.

Significant Predictor

A significant predictor in statistics is a variable in a statistical model that has a strong relationship with the outcome variable.